The Managing Director/Chief Executive Officer of Oil and Gas Free Zones Authority (OFGZA) Bamanga Usman Jada has said that the decision to establish a dedicated Oil and Gas Special Economic Zones scheme in Nigeria has been justified.
“The idea of the oil and gas SEZs was to drive efficiency through specialization that would accelerate investments in the sector, creating sources of wealth, facilitating skills and technology transfer as well as providingemployment opportunities to host communities”, he explained.
Speaking at the 3rd Special Economic Zones Annual Meeting in Lagos recently, the Managing Director revealed that “Since the first oil and gas free zone was established in 1996 at Onne/Ikpokiri Rivers State, the scheme has contributed over $24.6bDirect Investments into the economy, and Nigeria hasbecome self-sufficient in specialized and highly sophisticated technologies like Mud engineering, specialized welding & fabrication, Ocean-Going Vessels (OGVs) Ship Building, Pipe coating, Valve & Christmas Tree Assembling, and many others”.
Bamanga said the Oil and Gas Free Zones Authority ensured that up to 31,404 Nigerians were trained in hi-tech petroleum industry skills, some of which were under the ITF programme.
“This collaborative effort between Agencies of government helped to fast-track the capacity building and empowerment of Nigerian employees of OGFZ companies in areas that were previously considered as exclusive for foreign expatriates. The good news is that, today, key reputable multinational oil and gas companies that operate in our Zones no longer depend on foreigners for high-responsibility roles. Hence, Nigerians are now the current Chief Executive officers of Baker Hughes, TechnipFMC, Tenaris, Pipe Coaters, etc,” he said.
He praised the economic reforms of President Bola Ahmed Tinubu saying “the President’s reforms are driving positive results in Nigeria’s Oil and Gas Free Zones. The World Bank projectedeconomic growth from 3.3% in 2024 to 3.6% in 2025, highlighting investment opportunities in Special Economic Zones. In responseto Mr. President’s priority projects and initiatives, OGFZA partnered with an investor to establish a CNG conversion centre in the Onne/Ikpokiri, reducing logistics costs by up to 70% while promoting cleaner fuel alternatives”.
Bamanga Usman Jada revealed that OGFZA was also currently facilitating the establishment of LPG processing plants in both Onne and Liberty Free Zones with a total storage capacity of 70,000MT, these projects will enhance access to clean cooking gas for over 200,000 homes, and ensure environmental sustainability.
The Managing Director further explained that “In May 2024, President Bola Ahmed Tinubu GCFRinaugurated the ANOH Gas Processing Plant and a 23.3km gas pipeline in the Orashi Energy Free Zone, Imo State. This new Free Zone supports the Decade of Gas Initiative and aims to boost industrialization while reducing gas flaring. The Orashi Energy Free Zone is expected to contribute 600mscf of natural gas daily, increasing Nigeria’s domestic gas supply by 25%, and supporting gas-to-power projects and gas-based industries.
While commending Nigerian Economic Zones Association (NEZA) for its advocacy roles, Bamanga Usman Jada called on the association to support OGFZA’s campaign to educate the public on Enterprise Resource Planning software [ERP], that was launched in 2017.
“The ERP tracks all cargo entering OGFZA Free Zones from arrival to final destination, ensuring compliance with Customs and OGFZA regulations while preventing unauthorized entry into the Customs territory without proper taxes and duties. This system has enhanced regulatory compliance and supports the government’s economic reforms” he said.
